Peter actually does really well selling to the people who don't know about the cheaper alternatives. His advertising helps him there, because you can't hardly go to any anime-related website without seeing J-list advertisements. It helps that he gives affiliate money to people who advertise to him, but he has to raise prices as a result.

He's a great guy, and I admit that I do buy stuff from him from time to time, but never figures. J-list is one of the few places I trust to buy Ghibli stuff from, for example.